Trump SEC lets Musk settle $150 million Twitter lawsuit for $1.5 million

Key Points:

• The Trump administration is allowing Elon Musk to settle a lawsuit over his late disclosure of a 9% Twitter stake by paying a $1.5 million fine through the Elon Musk Revocable Trust, significantly less than the original $150 million sought by the SEC.
• The lawsuit, filed in January 2025 by the Biden SEC, accused Musk of violating Section 13(d) of securities law by failing to disclose his Twitter stake within 10 days, enabling him to buy shares at artificially low prices.
• The SEC amended the case to hold Musk’s trust responsible for the fine, with Musk personally cleared of allegations, according to his lawyer, who emphasized the trust agreed to a small penalty without admitting wrongdoing.
• US District Judge Sparkle Sooknanan rejected Musk’s constitutional challenges to the disclosure requirements, affirming the SEC’s authority to enforce Section 13(d) against him.
• Separately, a federal jury found Musk liable for false statements about Twitter’s bot accounts during his attempt to cancel the acquisition, with potential shareholder damages estimated around $2.5 billion.